If the already signed Preferential Trade Agreement (PTA) with Indonesia is implemented, it would further benefit the edible oil sector of the country. The sector like others was benefited by the Free Trade Agreement (FTA) signed with Malaysia. To reduce the price of edible oil for consumers, the heavy duties on the commodity is needed to be reduced.
These views were expressed by A. Rasheed Janmohammed, Vice Chairman, Pakistan Edible Oil Refiners Association (PEORA) while addressing inaugural ceremony of a tow-day “Trade Seminar” organised by PEORA in collaboration with Federation of Oils, Seeds and Fats Associations Limited (FOSFA) here at a local hotel on Tuesday. This two-day Trade Seminar is being organised for creating awareness among the Edible Oil Industry of Pakistan of FOSFA Terms and Conditions, documentation and its execution, International Trading Standards, Technical Support and managing disputes and arbitration.
Abu Bakar Mammat, Consul General of Malaysia in Karachi was the Chief Guest. The delegation from FOSFA constitutes Stuart Logan, Chief Executive, Girish Patel, Immediate Past President and M Roger Rookes, member. Addressing the seminar, the Consul General of Malaysia assured his full co-operation in the consistent supply of palm oil products to Pakistan and also assured to look into the issues raised by the concerned importers. He further said that Malaysia was the brotherly country and would always be there to meet the requirements of edible oil industry. An opening presentation was given by the Immediate Past President of FOSFA, Girish Patel.
Mian Mohammad Hanif, chairman of PEORA, in his welcome address emphasised that Pakistan was the two million tons market for palm products and need the support of Government to reduce duties so that common man can be benefited with low prices. In his speech Rasheed Janmohammed informed the participants that Pakistan was now the third largest importer of palm oil products. He briefed the audience with detailed statistics of import of palm oil products in Pakistan from Malaysia and Indonesia for last three years. He also highlighted the impact of FTA signed with Malaysia and pointed out the upcoming impact of PTA which is signed with Indonesia but yet to be executed.
According to him edible oil refineries in Pakistan have the capacity of 5,500 MT per day but due to tariff and other obstacles are unable to utilise 100 percent capacity rather capacity utilisation is under 50 percent. Stuart Logan, Chief Executive FOSFA, in his speech informed that the Federation of Oils, Seeds and Fats Associations (FOSFA) is a professional international contract issuing and arbitral body concerned exclusively with the world trade in oilseeds, oils and fats with 975 members in 79 countries. These members include producers and processors, shippers and dealers, traders, brokers and agents, superintendents, analysts, ship-owners, and others providing services to traders.
FOSFA has an extensive range of standard forms of contracts covering goods shipped either CIF, C&F or FOB, for soybeans, sunflower seeds, rapeseed, and others, vegetable and marine oils and fats, refined oils and fats, from all origins world-wide, for different methods of transportation and different terms of trade. Internationally, 85 percent of the global trade in oils and fats is traded under FOSFA contracts. The Federation’s contracts incorporate a dispute procedure involving arbitration by experienced individuals from within the trade.
Amongst the audience who were representing Edible Oil Industry, Oilseed Industry, Oleo Chemical Industry, Surveyors and other different related figures of Edible Oil Industry. Fazal Qadir Sherani, President of Federation of Pakistan Chambers of Commerce & Industry, Mian Muhammed Ahmed, Patron In-Chief & Founder President Bin Qasim Association of Trade & Industry and Usman Ahmed, President, BQATI also graced the occasion.